20000329

KSE index

up by 52.84

points

RECORDER REPORT

KARACHI: Heavy short-covering in the selected companies at the Karachi Stock Exchange on Tuesday boosted the trading pattern and helped improve the share prices, recovering half of the declines recorded in the last session.

The index recorded sharp rise as several financial institutions bought shares that held good promise of returns. Buying spurted in the scrips that are likely to be privatised soon. Sui Northern Gas, PTCL and PSO scored big rallies.

The KSE-100 index went up by 52.84 points or 2.74 percent to 1,984.26 from 1,931.42 of Monday. The volume amounted to 313.286 million shares as against 266.723 million shares of Monday. The market capitalisation moved down to Rs 500.457 billion from Rs 488.326 billion.

A leading analyst said that the strong surge in oil marketing stocks along with positive movements in over-depressed large caps had turned the tempo positive. The activity in second tiers too picked up resulting in enhanced market volume. The wild market moves since beginning suggested profit realisation on intra day rises.

A trader said that the market recorded a remarkable recovery at the KSE where the fresh buying spree in the active as well as selected stocks gave boost to the entire trading scenario.

The institutional support continued from the beginning of the day, which eventually resulted in a lot of panicky among the bears, who rushed to square their short sold positions and purchased at any prevailing prices.

On the other hand, market men also realised that the over-pessimistic approach was seen on Monday, which apparently was not according to the accurate pace and hence they started to establish fresh positions.

In addition, the long-term outlook of the market had not yet been changed and the investors were still optimistic that the market might improve further, if the process of privatisation continued in a positive way and even the index could cross its previous high levels.

Around the board recovery was observed and the overall sentiment remained bullish throughout.

PTCL on a trading of 95.447 million shares showed a fall of 85 paisa to Rs 32.75, ICI on a trading of 59.566 million shares closed at Rs 16.60, i.e. higher by Rs 1.15, Hub Power moved up to Rs 28.15 from Rs 27.40 as nearly 45.461 million shares changed hands, PSO on a volume of 28.147 million shares recorded an increase of Rs 12.10 to Rs 244 and Japan Power on a turnover of 14.984 million shares moved down by Rs 9.03 to Rs 8.40.